8 Aug 2008

Bridgecorp founder declared bankrupt

2:46 pm on 8 August 2008

The founder of the collapsed finance firm Bridgecorp, Rod Petricevic, has been declared bankrupt.

Bankruptcy proceedings were started after he failed to pay more than $600,000 that receivers say is owed because Bridgecorp paid his tax in 2006.

A High Court ruling was made in May when Mr Petricevic denied owing the money. He failed to lodge a $576,000 payment with the court in July.

It has also been revealed Hanover Finance has issued proceedings to obtain $4 million from Mr Petricevic after a failed loan.

Hanover says the debt is due to a personal guarantee Mr Petricevic had given on the loan to Bridgecorp

Bridgecorp collapsed last July owing 18,000 investors about $500 million.

Meanwhile, a receiver says the declaration of bankrupcy has made the task of recovering money from Mr Petricevic more complicated in some ways.

Colin McCloy says the latest estimate of recovery to investors is between 15% and 44% of their investment.